Elexon seeking right balance

Wednesday 27 February 2002 00:00 BST

THE company at the heart of the new network for trading electricity has warned it had been hit by a system failure. Elexon, which runs the so-called 'balancing mechanism' ensuring demand is exactly met by supply in England and Wales, said it was investigating the root cause as a matter of urgency.

The arrangements were put in place a year ago in a bid to drive down prices. While 97% of electricity trading is done through bilateral contracts, the 3% rump is conducted through the balancing mechanism.